SelectQuote (SLQT) Faces Investor Lawsuit After DOJ Steps into Medicare Sales Probe – Hagens Berman

Core Viewpoint - SelectQuote Inc. is under legal scrutiny due to a whistleblower lawsuit alleging deceptive sales practices, leading to a significant drop in its stock price and a class-action lawsuit from investors [1][4][5] Legal Issues - The U.S. Department of Justice intervened in a lawsuit claiming SelectQuote misled investors about its business model and regulatory risks, particularly regarding its Medicare Advantage sales practices [1][2][3] - The lawsuit alleges that SelectQuote received tens of millions of dollars in improper payments and directed customers away from lower-margin plans, violating federal statutes including the False Claims Act [3][7] Market Impact - Following the DOJ's involvement, SelectQuote's stock price fell nearly 20% on May 1, 2025, and has since declined over 40% in the past six months, reflecting investor concerns about legal exposure and reputational damage [4][5] Class-Action Lawsuit - The class-action lawsuit, Pahlkotter v. SelectQuote Inc., covers investors who purchased stock between September 9, 2020, and May 1, 2025, alleging that the company failed to disclose material risks related to its sales practices [2][5] - Hagens Berman, the law firm representing the investors, is investigating potential revenue manipulation and deceptive conduct by SelectQuote [6]